28. Which of the following is the most likely outcome of a foreign firm entering

Question

28. Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm's industry?

A. Capturing first-mover advantages

B. Higher pioneering costs

C. Rapid increase in market share

D. Limited future growth potential

E. Increase in sales volume

29. Which of the following entry modes into a foreign market best serves a high-tech firm?

A. Turnkey projects

B. Franchising

C. Wholly owned subsidiaries

D. Joint ventures

E. Exporting

Explanation / Answer

28. Option (D) -It will be associated with much lower levels of risk. However, the potential long-term rewards are also likely to be lower because the firm is essentially forgoing the opportunity to capture first-mover advantages and because the lack of commitment signaled by small-scale entry may limit its future growth potential.

29. Option(E) -   For hitech – firms exporting is the well suited foreign entry mode, as for technology, exporting is the least risky while licensing is generally the most risky.

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